arXiv Open Access 2026

Green Subsidies and Local Transitions: Evidence from Energy Communities

Akcan Balkir
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Abstrak

This paper studies the effectiveness and incidence of the renewable energy Production Tax Credit (PTC) and Investment Tax Credit (ITC). I leverage new geographical variation in the 2023 PTC and ITC to test whether renewable energy credits had real economic impacts. Communities with greater tax credits accumulated 32% more renewable energy capital and produced 28% more renewable energy compared to similar counties. These renewable investments had local economic spillovers, increasing county level construction wages by 7%. However, local increases in investment and wages from renewable projects did not improve political support for renewable energy, but rather increased opposition to congressional action on climate change by 2%.

Topik & Kata Kunci

Penulis (1)

A

Akcan Balkir

Format Sitasi

Balkir, A. (2026). Green Subsidies and Local Transitions: Evidence from Energy Communities. https://arxiv.org/abs/2604.00582

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Tahun Terbit
2026
Bahasa
en
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arXiv
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Open Access ✓